6 Stocks You Need To Know For Monday
Stocks were weak throughout the course of Friday’s trading.
Most of the down movement occurred during the first hour and half and then, from
there, the markets went sideways. The stage was set for a down day on the
release of stronger-than-expected U.S. payrolls in July.
This report was interpreted bearishly by Wall Street.
While some analysts were saying that this is a strong
indication that the economic recovery is sustainable, the market sold off due to
concerns that a strong economy would prompt the Fed to lift interest rates.
The losses were moderate, however.
The S&P 500 closed down 9.44 at 1,235.32 and the Nasdaq was
down 13.41 for a 0.61% loss for the day, closing at 2,189.42.
The dollar rose today on the premise that higher interest
rates would favor dollar-denominated assets. For a more detailed analysis of the
prospects for the dollar,
click here and read Forex Strategist Kathy Lien’s article for today.
The most notable mover of the day was Baidu.com
(
BIDU |
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PowerRating)
which was up 95.54 after its initial public offering for a 353% gain.
Other stocks were lifted by earnings results.
Goodyear
(
GT |
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News |
PowerRating), previously mentioned in
TradingMarkets Mid-day MarketFlash ended the day up 1.04. Homestore.com
(
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PowerRating)
was 39% higher with a gain of 1.01 points.
Protein Design Labs
(
PDLI |
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PowerRating) which was noted in a
pre-market briefing from TradingMarkets was up 1.315 for a 5.08% gain on the
day.
Here are six charts from today’s action that may interest
you for Monday’s trading. Keep in mind that these are not recommendations. They
are observations from today’s action which you may want to incorporate into your
own research.
Asyst Technologies
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ASYT |
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PowerRating) made a strong comeback from
yesterday’s sharp pullback to its short-term support level established in
mid-July. With a strong close today prompted by Q1 results that beat estimates,
the stock may be poised to move higher. The stock has been in a five-week
uptrend and swing traders probably will wait for another more orderly pullback
before attempting an entry.
While ON Semiconductor
(
ON |
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PowerRating) was relatively unchanged today,
the fact that it closed up on a day that semis were weak was a favorable sign.
If the semis regain strength next wek, this stock may be among the chief
gainers.
Goodyear Tire
(
GT |
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PowerRating) is breaking out of a six-day consolidation into new
high territory. Astute traders will not enter here, but rather, wait for a
potential pullback. Watch for the previous resistance level near 17.75 to become
a new support level.
Gilead Sciences
(
GILD |
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PowerRating) had three consecutive down days and may close
lower today. Some traders would view GILD as approaching a potential oversold
condition. Chart-oriented traders will also tend to see a trendline connect the
three major lows made in June and July. With these factors combined, you might
look for a potential bounce (or at least consolidation) near the current levels
over the next few days.
Texas Instruments
(
TXN |
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PowerRating) is pulling back to a short-term support level
near 31.25. Because the stock has been in a strong uptrend for the past six
weeks, many swing traders will watch for this pullback to find support here.
National Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating) is following through into a four-day
decline. But look at how the stock has not meaningfully penetrated a previous
level of support that was established in mid-July. Watch Monday’s action to see
whether this level holds. If the market turns positive and the
semiconductor group recovers, NSM may be a participant to the upside.
Have a great weekend,
Brice Wightman